• Foreign investors net sellers in every session; outflow nears Rs. 380 m
• ASPI still down over 9% for the year despite week’s gains

Local investors lifted the Colombo Stock Exchange (CSE) last week, absorbing steady foreign selling to push the benchmark index almost 2% higher.

The All Share Price Index (ASPI) closed at 20,541.12 on Wednesday (4), up 1.98% from the previous week’s close of 20,142.33. The more liquid S&P Sri Lanka 20 Index rose 1.54% over the same period to 5,835.09.

Foreign investors, however, were net sellers in each of the first three sessions of the week. Their combined net outflow was close to Rs. 380 million. 

The heaviest selling came on Tuesday (3), when foreign sales of Rs. 271.2 million far outweighed purchases of Rs. 28.7 million. The selling continued on Wednesday, with a net outflow of about Rs. 136.5 million.

Local investors bought the shares sold by foreigners. Domestic buyers were net purchasers on both Tuesday and Wednesday, and accounted for nearly 98% of trading value on Wednesday.

Most of the week’s gain came on Wednesday. The ASPI rose 2.09%, or 421.48 points, in that single session after a 0.31% dip on Monday (2) and a 0.20% rise on Tuesday. The rally was broad: 217 stocks advanced and only 23 declined.

Activity picked up sharply as the week went on. Equity turnover rose from Rs. 921 million on Monday to Rs. 1.52 billion on Tuesday and Rs. 3.87 billion on Wednesday. Wednesday’s figure was well above the year-to-date daily average of Rs. 3.41 billion.

Banking and telecommunications stocks led the gains. On Wednesday, Commercial Bank added 42.36 points to the index, Dialog Axiata 35.64 points, and Hatton National Bank 25.67 points. Softlogic Holdings and Softlogic Finance were the session’s top gainers, rising 20.59% and 19.35%, respectively.

Market capitalisation rose to Rs. 7.40 trillion by mid-week, from Rs. 7.26 trillion at the end of the previous week.

The week’s gains do little to change the market’s position for the year. The ASPI remains 9.21% lower year-to-date and well below its 2026 peak of 23,992.11. It is closer to the year’s low of 19,640.56. That is a contrast with the second half of 2025, when the ASPI recorded six consecutive monthly gains between July and December.

The market traded at a price-to-earnings ratio of 10.57 times and a price-to-book ratio of 1.22 times on Wednesday.

(PA)